Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

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tmhudg
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Post by tmhudg » Tue Aug 20, 2019 8:08 pm

LadyGeek wrote:
Tue Aug 20, 2019 2:48 pm
^^^ For Optum Bank, was this initiated with Fidelity forms, meaning Fidelity is pulling everything over from Optum? Did Optum charge any fees for the transfer?

I have Optum and am looking to move the bulk of my cash account to Fidelity. Optum is charging a $2/month maintenance fee as long as you keep the balance above $5,000. I want to keep the Optum account open in order to retain my employee contributions.

I"ll start investing with Fidelity once I have my cash account moved over and have sufficient funds to do so.
Yep, I opened an HSA account in Fidelity and started the transfer from there. I can't really tell if Optum charged me any fees. I don't see anything when I login to my Optum account - just a 0$ balance. If there were any fees it was minimal and I'm just glad to be rid of them. When they switched to their new secure login process, I couldn't login for about a month. Went back and forth with Support so many times. I started the transfer process while this was going on. I finally got login access a couple of days before everything was sucked over to Fido. Teach them...

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LadyGeek
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Post by LadyGeek » Tue Aug 20, 2019 9:33 pm

Thanks to both.
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Mike14
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th

Post by Mike14 » Thu Aug 22, 2019 8:28 pm

tj wrote:
Wed May 29, 2019 11:41 pm
Spirit Rider wrote:
Wed May 29, 2019 6:34 pm
I thought Health Equity requires a partial transfer to leave $25 in the account.

So leave all but $25 and spend the $25 on the debit card?
Did anybody actually do this successfully?

Box5phantom
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Post by Box5phantom » Tue Oct 08, 2019 1:15 pm

I have a few questions for those who had HSA with HSABank and transferred the assets to Fidelity. I am planning to use HSA in 2019, and my current employer uses HSABank to manage the HSA.

Does that mean I need to keep the HSABank account open to receive the contributions from my employer?

In your experience, can I contribute to the Fidelity HSA account through the payroll on pre-tax basis? Alternatively, I assume that I can make after-tax contribution to Fidelity directly and claim the tax deduction later?

If I keep $0 account balance at HSABank, it seems there is a monthly fee of $2.5 for that under daily balance of $5,000. Is that correct?

Is the monthly transfer from HSABank to Fidelity straight forward (like a ACH transfer without fees)?

Thanks,

Spirit Rider
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Post by Spirit Rider » Tue Oct 08, 2019 2:02 pm

Box5phantom wrote:
Tue Oct 08, 2019 1:15 pm
I have a few questions for those who had HSA with HSABank and transferred the assets to Fidelity. I am planning to use HSA in 2019, and my current employer uses HSABank to manage the HSA.

Does that mean I need to keep the HSABank account open to receive the contributions from my employer? Yes.

In your experience, can I contribute to the Fidelity HSA account through the payroll on pre-tax basis? Not unless in the extremely rare case your employer allows you to specify the HSA custodian. Alternatively, I assume that I can make after-tax contribution to Fidelity directly and claim the tax deduction later? Yes, but you will not receive the exemption to FICA taxes that employee contributions by salary reduction receive.

If I keep $0 account balance at HSABank, it seems there is a monthly fee of $2.5 for that under daily balance of $5,000. Is that correct? I don't know.

Is the monthly transfer from HSABank to Fidelity straight forward (like a ACH transfer without fees)? Most HSA custodians charge a $20 - $30 fee for each trustee -> trustee transfer. I don't know if or what fee HSA Banks charges. You can only do one free indirect HSA -> HSA 60-day rollover every 12 months.

aristotelian
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Post by aristotelian » Tue Oct 08, 2019 9:43 pm

Box5phantom wrote:
Tue Oct 08, 2019 1:15 pm

Does that mean I need to keep the HSABank account open to receive the contributions from my employer?

In your experience, can I contribute to the Fidelity HSA account through the payroll on pre-tax basis? Alternatively, I assume that I can make after-tax contribution to Fidelity directly and claim the tax deduction later?
I have Direct Deposit from my employer (using their FSA service) straight to my Fidelity HSA. You would have to talk to your employer or their payroll services to see if that is an option.

Those are pre-tax/no FICA. Yes, you can contribute on your own as well but it is better to do it through your pay check to avoid the FICA tax.

Spirit Rider
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Post by Spirit Rider » Wed Oct 09, 2019 1:27 am

aristotelian wrote:
Tue Oct 08, 2019 9:43 pm
I have Direct Deposit from my employer (using their FSA service) straight to my Fidelity HSA. You would have to talk to your employer or their payroll services to see if that is an option.

Those are pre-tax/no FICA. Yes, you can contribute on your own as well but it is better to do it through your pay check to avoid the FICA tax.
You should be careful using the term "direct deposit".

To be pre-(Income/FICA) tax exempt the HSA contributions have to be salary reductions through the employer's section 125 plan and then deposited into your HSA account.

The term "direct deposit" usually refers to payroll direct deposits of after-tax net pay. Payroll can do direct deposits to any ACH routing and account number. However, such a contribution is subject to both income and FICA taxes and must be deducted on your tax return.

mervinj7
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Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Post by mervinj7 » Mon Oct 14, 2019 12:21 pm

For those that may not be aware, Fidelity's Institutional Premium Class Freedom Index Target Date Funds are available for purchase in their HSA accounts. For example, FFOPX (2050 Fund) has a ultra-low ER of 0.08% (vs. 0.12% for FIPFX) and normally has a minimum purchase of $100M. Although, most folks would be better served by just investing in a single equity fund or Treasury bond/bill ladder (for us "lucky" CA folks), it's another option.

FFOPX: https://fundresearch.fidelity.com/mutua ... /315793570

https://www.fidelity.com/bin-public/060 ... nsider.pdf

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